Paper Versus Electronic Documentation
It’s funny how we all see things, as a man in his mid-fifties who has been married thirty years, I still never see myself as old – although my kids do! I just think some of my joints have worn out way before their time. I mean, if you live in my community there are people over 100 years old still driving themselves around town. This can make anyone my age feel very young.
After all, I do consider my myself a pretty healthy guy with a little extra coating around the midsection to help keep me warm, oh forget that, I live in Florida. No really, I am pretty healthy especially for my age but recently I have had to make a few trips too many to the VA hospital. Something popped up that gave me a little concern and reminded me that we are all still vulnerable no matter how strong or healthy we think we are.
My point is, after looking around the hospital Continue reading
“Do It Yourself” mortgage loans? Nope I don’t think so. They are almost in existence. Today it’s easy to find places on line to apply on line. Even my business website even has an “Apply Now” button. But what is the difference between applying on line and completing a full loan approval on line without ever talking to someone.
I remember as a kid my Grandfather complaining about all the stupid people who were purchasing stuff from the “Sears Catalogue”. He would say why don’t you just go down to the store. See what you’re actually going to buy. Check out and verify the Continue reading
Banks, Those Dirty SOB’s
Another round of swindling the government and consumer’s money. Another form of the modern-day carpetbaggers. This is the second case I have seen in just a few months and I expect to see more coming out soon.
What I am talking about is this. Continue reading
Mortgages and Divorce
I know everyone is different and we all have different likes and desires. Some like a home in the country while others like the city life. I always loved the outdoors, the wildlife and going deep in to the forest. I could live on a mountain side forever. My wife on the other hand would rather live in a high-rise condo in the city. Some place where she could just step outside and walk to the store across the street and browse all day long. With all that said it’s amazing we have been married 30 years.
For many people differences in life or life-styles cannot be compromised and therefore their relationships end. For what ever the reason(s) people split, everyone needs Continue reading
Because we care
Last night was no different to many others. During the day I meet with people at my office and. as I know most of you work very hard during the day you cannot always make it to my office during business hours. There are often times I make trips out to visit people in their homes in the evening and last night was no different.
I arrived at 5:30 pm and the couple there were in their 70’s wanting information on reverse mortgages. I brought along my standard information and FHA/HUD booklet for them to have. I like to keep things very simple. I am not a pushy salesman or aggressive, like I am when playing a sport. I am more like a mortgage coach for beginners. I understand my field intimately and I can go head to head with those who think they are the best.
I generally start off with a talk about Continue reading
Debt Versus Savings
I can’t remember how long it’s been since I wrote about debt and the balance between savings. I know what the more famous financial experts say; “Be debt free and increase savings.”
I may not be famous but I like to believe I am more like the consumer advocate Ralph Nader when it comes to consumer financing.
Finding that right balance is just that, a balancing act. I could really write a book on just this subject and give you hundreds of examples of the different scenarios I have worked with over the years. But today I want our focus to be on the preparation process of the loan application and taking it through to the closing of your new home purchase.
Ideally, I would have to agree with Continue reading
Putting Up the Good Fight
I know my family listens, but I often wondered how many others really listen to me when I am retelling stories from my days in the Marine Corps. I have never seen anyone roll their eyes or even get bored when I repeat the same stories. So are they just listening to be respectful or are they tuning into the lessons that maybe within them.
I work with people from all different walks of life. People may come in with Continue reading
Your Most Important Investment
Living in a world where you have the chance to see many different financial records of home buyers, you sometimes wonder why some people just don’t get it. Get what? The best use of money. Good and bad habits show through on all financial portfolios of the rich or poor.
I have seen people with six figure incomes and very little debt yet with very little in savings. I have seen people with incomes below the median area income and yet have more cars and toys then the value of the average home in the area and still renting a small apartment. No matter the portfolio, most people spend too much money eating out. Actually the average home buyers I worked with spend more money eating out than on groceries each month.
Other than your health and the health of your family, your home should be your most important investment. I want you to think outside the box and first take a look at your annual social security statement. This statement tells you what age you will be able to start collecting social security income. Your overall plan should be based on that age or the age at which you will have the ability to chose when you want to retire whichever comes first.
Your goal should be to have your home at an equity position greater than 50% of your home’s value by your retirement age. The sooner you purchase your primary home the easier it will be to achieve this. This has to do with the time value or money, amortization, and capital appreciation.
At this point in your life you will then have the opportunity to do one of two things. Either do a reverse mortgage on your home or refinance your home into a lower monthly payment basing it on your retirement income. It’s important to never refinance your primary residence in order to consolidate debts. This could lead to financial disaster. Your priority is to always protect your home before protecting any other asset. Remember if we have another financial crash its easier to try and pay a lower mortgage than it is to live inside a fancy sports car.
Renting a home should only be a temporary thing for any family. Rents increase every year and in most cases, leads to a diminish living conditions and depression. Cracking down on foolish spending like eating out 7 days a week or buying a used car versus a new one can help you put yourself in a better position for attaining home ownership.
If you would like me to help you put together a good plan to maximize your potential for home ownership call me. Ask questions, get all your facts and we will see you at a happy closing table.
Are you and employee or self employed? This is not an uncommon thing, where people do not know or understand how they are classified or paid. There are some significant differences from a W2 employee or a 1099 Self employed individual.
I am not an attorney or a CPA, I do not work for the IRS or department of labor nor do I want to. However, I do want to talk about this from a loan origination point of view and what the basic facts are of what we ask of you when you complete your loan application and for us to get your loan approval.
Let’s start with are some common statements I hear from borrowers regarding the confusion between being an employee or self employed: Continue reading
Is it the lender or me that is causing the issues? Well there are many different types of lenders, banks and mortgage brokerages. Each one has a different type of niche or type of borrower/ loan they prefer to work with and, yet some are just plan cookie cutter (generic). Probably it is a little of both!
What is hard for many people to understand is that its just as much about the lender as it is about the buyer. A buyer with an 800 plus credit score, who is a W2 employee and applying for a loan amount over $250,000 can pretty much pick who ever they would like to work with and really shop out the best rate.
A self-employed individual with two or more companies and multiple properties with a loan amount under $250,000 and a credit score in the 600’s is not likely going to have an easy time shopping rates and would rather spend more time searching for someone to get their loan done on time. This type of buyer is Continue reading